Decreasing returns to scale
This is the current revision of Decreasing returns to scale as edited by Brenden (talk | contribs) at 02:54, December 19, 2012. This URL is a permanent link to this version of this page.
Decreasing returns to scale occur when the percent increase in productivity due to an increase in input is less than the percent all the inputs were increased.
For example, if a company increases its input by 50% and their output increases by only 25%, the company has decreasing returns to scale.